Bill 196, Legislative Assembly Amendment Act (Severance Allowance), 2005

Versions

Bill 196 2005

An Act to amend the
Legislative Assembly Act
with respect to severance allowances

Note: This Act amends the Legislative Assembly Act. For the legislative history of the Act, see Public Statutes - Detailed Legislative History on www.e-Laws.gov.on.ca.

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

1. Section 69 of the Legislative Assembly Act is repealed and the following substituted:

Severance allowance

69. (1) A person who is a member of the Assembly immediately before the Assembly is dissolved or is ended by the passage of time and who does not become a member of the next following Assembly shall be paid a severance allowance as described in subsection (4) or (5), as applicable.

Payment on resignation

(2) A member of the Assembly who resigns his or her seat shall be paid a severance allowance as described in subsection (4) or (5), as applicable.

Payment on death of member

(3) If a person who is a member of the Assembly dies, whether before the Assembly is dissolved or is ended by the passage of time or after dissolution or ending of the Assembly but, in all cases, before the polling day that follows the dissolution or ending, a severance allowance as described in subsection (4) or (5), as applicable, shall be paid to the personal representative of the person.

Previous amount

(4) If the person ceased to be a member before the day on which the Legislative Assembly Amendment Act (Severance Allowance), 2005 came into force, a severance allowance under subsection (1), (2) or (3) shall be in the following amount:

A × B

where,

A = one-twelfth of the member's annual salary at the rate in force,

i. on the day immediately before the person ceases to be a member, in the case of a severance allowance under subsection (1) or (2), or

ii. on the day of the member's death or, if the Assembly is not in session on the day of death, on the day immediately before the dissolution or ending of the Assembly, in the case of a severance allowance under subsection (3),

B = neither the greatest, nor the least, of six, 12 and the number of years of service of the member.

New amount

(5) If the person ceases to be a member on or after the day on which the Legislative Assembly Amendment Act (Severance Allowance), 2005 came into force, a severance allowance under subsection (1), (2) or (3) shall be the sum of the amounts calculated under subsections (7) and (8).

Appropriation required

(6) Despite subsection (1), (2) or (3), no amount of a severance allowance shall be paid to a member of the Assembly under subsection (4) or (5) unless the Assembly by appropriation authorizes the payment.

Pre-1995 service

(7) If the person was a member of the Assembly for any period before June 8, 1995, the severance allowance with respect to that part of the member's service shall be in the following amount:

A × B

where,

A = one-twelfth of the greater of,

i. the member's annual salary at the rate in force,

A. on the day immediately before the person ceases to be a member, in the case of a severance allowance under subsection (1) or (2), or

B. on the day of the member's death or, if the Assembly is not in session on the day of death, on the day immediately before the dissolution or ending of the Assembly, in the case of a severance allowance under subsection (3), and

ii. the average of the member's annual salary over the three years during which the member received the highest annual salary, if the member has been a member of the Assembly for more than three years,

B = the number of years of service of the member for the period before June 8, 1995.

Post-1995 service

(8) If the person was a member of the Assembly for any period after June 7, 1995, the severance allowance with respect to that part of the member's service shall be in the following amount:

A × B

where,

A = one-sixth of the greater of,

i. the member's annual salary at the rate in force,

A. on the day immediately before the person ceases to be a member, in the case of a severance allowance under subsection (1) or (2), or

B = the greater of three and the number of years of service of the member for the period after June 7, 1995.

Annual salary

(9) For the purposes of subsections (7) and (8), the annual salary of a member is the annual salary paid under sections 61 to 63.

Commencement

2. This Act comes into force on the day it receives Royal Assent.

Short title

3. The short title of this Act is the Legislative Assembly Amendment Act (Severance Allowance), 2005.

EXPLANATORY NOTE

The Bill amends the Legislative Assembly Act with respect to the severance allowance paid to members of the Assembly who cease to be members on or after the day on which the Bill is enacted.

At present, subject to a minimum allowance of six months of salary and a maximum allowance of 12 months of salary, the allowance is equal to one month of salary for every year of a member's service. The Bill removes the limit on the maximum and amends the allowance so that, subject to the same minimum, the allowance is equal to two months of salary for every year of a member's service after June 7, 1995.

At present, the salary basis on which the allowance is calculated is the member's salary under section 61 of the Act. The Bill increases the salary basis to include the salary for additional responsibilities under section 62 of the Act and to use the average annual salary for the three years during which the member received the highest annual salary, if that increases the allowance.